LLOG Bluewater (LLOG), a joint venture between LLOG Exploration L.L.C. and Blackstone Energy Partners and its affiliates, has successfully installed its Delta House floating production system (FPS) in Mississippi Canyon 254 in the Gulf of Mexico.

The FPS is located 209 km (130 miles) southeast of New Orleans in 1,372 m (4,500 ft) of water. LLOG, as operator of the facility, built the hull of the FPS at Hyundai Heavy Industry’s yard in Ulsan, South Korea and the topsides at Kiewit in Ingleside, Texas. ArcLight is the majority owner of the infrastructure consisting of the FPS and the lateral export pipelines. Other owners in the infrastructure include LLOG, Calypso Exploration, Red Willow Offshore and the entities managed by Ridgewood Energy, which includes Riverstone designated affiliates.

The FPS is designed for peaking capacity of 100,000 bbl/d of oil and 240 MMcf/d of gas. At this point in the project, most of the infield and export lines and subsea equipment—trees, manifolds and umbilical termination assemblies—have been installed. Lead time from sanction to installation was only 22 months, and first production from the facility is expected in the first half of 2015. The facility will serve as host for a series of LLOG-operated fields in the region.

LLOG and its partner Ridgewood Energy have drilled a successful exploration test at the Mississippi Canyon 79 Otis prospect. The initial exploratory well encountered more than 21 m (70 ft) of net hydrocarbons, and a subsequent appraisal sidetrack confirmed the discovery. The Miocene target is apparently a high-condensate yield gas reservoir in a high-quality reservoir sand. LLOG owns 70% working interest in the field. LLOG has begun evaluating regional hosts, including the Delta House FPS, regarding subsea development options for the discovery.

LLOG has also recently installed production facilities at its Powerball development at South Timbalier 231/232. LLOG and its partner, Walter Oil and Gas Corp., expect production from the field during fourth-quarter 2014. The South Timbalier 231#1 encountered 28 m (92 ft) of net gas pay, and the South Timbalier 232#1 encountered 58 m (190 ft) of net gas pay. LLOG owns 75% working interest in the field.

In the second quarter of 2014, LLOG initiated production from its Biddy Ball field at Mississippi Canyon 705 in approximately 305 m (1,000 ft) of water. Biddy Ball joined Mississippi Canyon 751 (Goose) and Mississippi Canyon 707 in a three-well subsea system that is 100% owned by LLOG Bluewater and LLOG Exploration.

Offshore